Skeena Intersects 10.09 g/t AuEq over 45 Metres at Eskay Creek
Skeena Intersects 10.09 g/t AuEq over 45 Metres at Eskay Creek
Vancouver, BC ( October 31, 2018) Skeena Resources Limited (TSX.V: SKE, OTCQX: SKREF)
(“Skeena” or the “Company”) is pleased to announce additional Au-Ag assays for six holes from the
ongoing Phase I surface drilling program at the Eskay Creek Project (“Eskay Creek”) located in the
Golden Triangle of British Columbia. The multifaceted Phase I program is being performed in the
historically drill defined 21A, 21C and 22 Zones . Reference images are presented at the end of this
release as well as on the Company’s website.
Eskay Creek Phase I Drilling – Recent Highlights:
• 9.07 g/t Au, 76 g/t Ag, 10.09 g/t AuEq over 45.00 m (SK-18-012)
o Including: 13.06 g/t Au, 84 g/t Ag, 14.18 g/t AuEq over 27.77 m
• 5.39 g/t Au, 139 g/t Ag, 7.24 g/t AuEq over 28.30 m (SK-18-014)
o Including: 8.23 g/t Au, 185 g/t Ag, 10.69 g/t AuEq over 12.45 m
• 4.16 g/t Au, 204 g/t Ag, 6.88 g/t AuEq over 43.50 m (SK-18-017)
o Including: 3.53 g/t Au, 502 g/t Ag, 10.23 g/t AuEq over 15.00 m
Gold Equivalent ( AuEq) calculated via the formula: Au (g/t) + [Ag (g/t) / 7 5]. Reported core lengths represent 80 -100% of true widths and are
supported by well -defined mineralization geometries derived from historical drilling. Length weighted AuEq composites were constrained by
geological considerations as well as a calculated 1.0 g/t AuEq assay grade cutoff assuming reasonable prospects for economic extraction via open
pit mining methods. Grade capping of individual assays has not been applied to the Au and Ag assays informing the length weig hted AuEq
composites. Processing recoveries have not been applied to the AuEq calculation and are disclosed at 100% due to a lack of supporting information.
Samples below detection limit were nulled to a value of zero.
Phase I Drilling Discussion
The Phase I drilling pro gram at Eskay Creek continues to demonstrate the excellent grade and
geological continuity of the 21A Zone. The program is designed to infill and upgrade areas of the 21A
Zone with low drill density to sufficient drill spacing to allow for future economic analyses and also to
collect fresh material for an upcoming metallurgical testing program.
Mineralization intersected on section 10,000N (see images below) is largely hosted in the footwall
rhyolites with minor mineralization hosted in the contact mudstone as illustrated by an intercept of
9.07 g/t Au, 76 g/t Ag, 10.09 g/t AuEq over 45 m (drill hole SK-18-012) including a higher-grade
interval grading 13.06 g/t Au, 84 g/t Ag, 14.18 g/t AuEq over 27.77 m. On the same section drilling
intersected 5.39 g/t Au, 139 g/t Ag, 7.24 g/t AuEq over 28.3 m including 8.23 g/t Au, 185 g/t Ag,
10.69 g/t AuEq over 12.45 m (drill hole SK-18-014) located 45 m down-dip of SK-18-012. On section
9960N drilling intercepted 4.16 g/t Au, 204 g/t Ag, 6.88 g/t AuEq over 43.5 m hosted entirely within
the footwall rhyolite facies (drill hole SK-18-017).
21A and 21B Zones - Analogous Mineralization Styles
The 21B Zone is geologically and geochemically equivalent to the 21A Zone and accounted for the
bulk of mineralization historically mined at Eskay Creek. The 21B Zone occurs as a tabular, stratiform,
NR: 18-27
October 31, 2018
fault-bounded body characterized by well -bedded, reworked sulfides and sulfosalts interbedded with
unmineralized, carbonaceous argillite (mudstone). In addition to the extremely high precious metal
grades Eskay Creek as a whole (particularly in the 21A and 21B Zones ) is distinguished from
conventional VMS deposits by the association with elements of the epithermal suite (Sb -Hg±As).
Elevated concentrations of Sb-Hg-As in the 21A and 21B Zones are not evenly distributed throughout
the zones but rather occur as isolated clusters due to later stage localized hydrothermal overprinting.
Although the bulk of the mined material was hosted in the contact mudstone, signifi cant unmined
mineralization exists in proximal feeder structures in the footwall rhyolites (21C and Pumphouse
Zones). These zones differ geochemically from the 21A and 21B Zones in that they contain low levels
of Sb-Hg-As as compared to those hosted in the contact mudstone.
21B Zone Historical Reconciliation
Underground mining at Eskay Creek was performed using the drift and fill mining method with run-of-
mine material either milled at site to generate a concentrate or as direct shipping ore (“DSO”), to
smelters. Due to the elevated concentrations of Sb -Hg-As in the 21B Zone, smelter penalties were
often prevented via blending with slightly less deleterious material thereby diluting the penalty
elements while maintaining a profitable head grade.
Based upon historical internal technical reports from the Eskay Creek Mine , the parameters for
determining reserves in 2006 were base d upon a gold price of US$475 per ounce, a silver price of
US$8.50 per ounce and a co pper price of US$1.50 per pound. The nominal pri ce of gold in 2006
averaged US$603 per ounce and the inflation adjusted price averaged US$738 per ounce, which are
significantly lower commodity prices than today. The determination of whether material was milled on
site versus shipped directly to an offsite smelter was based on mercury concentrations less than 200
ppm and antimony concentrations less than 1% for onsite milling and greater than 200 ppm mercury
or greater than 1% antimony for smelter DSO. The same 2006 mill performance report indicates
metallurgical recoveries from onsite milling of the 21B Zone at 84% for gold and 96% for silver.
Despite the substantial precious metal grades and base metal credits of the 21A Zone, in the opinion
of the Company, the low commodity prices combined with smelter penalties and necessary cut -off
grade deemed the 21A Zone historically uneconomic. As well, antimony was treated as a penalty
element and now has the potential to offer significant by-product credits.
About Eskay Creek
In December 2017, Skeena secured an option to acquire 100% interest in the Eskay Creek property.
Discovered in the Golden Triangle in 1988, the former Eskay Creek mine produced approximately
3.3 million ounces of gold and 160 million ounces of silver at average grades of 45 g/t gold and
2,224 g/t silver. Eskay Creek was once the world’s highest -grade gold mine and fifth -largest silver
mine by volume.
A precious and base metal -rich volcanogenic massive sulphide (VMS) deposit, Eskay -style
mineralization has been the focus of considera ble exploration activity in the Golden Triangle dating
back to 1932. Exploration programs in 1988 led to the discovery of the 21A and 21B zones, followed
by underground development of the 21B zone starting in 1990 with the official opening of the Eskay
Creek mine in 1994. Over the 14 -year life of the mine, approximately 2.2 million tonnes of ore were
mined with cut-off grades ranging from 12 to 15 g/t AuEq for mill ore and 30 g/t AuEq for direct shipping
smelter ore.
Eskay is endowed with excellent infrastructure including all-weather road access and proximity to the
new 287-kilovolt Northwest Transmission Line. The Property consists of 8 mineral leases, 2 surface
leases and several unpatented mining claims totaling 6,151 hectares.
Eskay is in the traditional territory of the Tahltan Nation. Skeena has a positive working relationship
with the Tahltan Central Government (“TCG”) and has signed Exploration and Communication
Agreements with the TCG that cover the Company’s other projects in Tahltan terr itory (see new s
releases dated September 25, 2017 and January 24, 2017).
About Skeena
Skeena Resources Limited is a junior Canadian mining exploration company focused on developing
prospective precious and base metal properties in the Golden Triangle of northwest British Columbia,
Canada. The Company’s primary activities are the exploration and development of the past-producing
Snip mine and the recently optioned Eskay Creek mine, both acquired from Barrick . In addition, the
Company has completed a Preliminary Economic Assessment on the GJ copper -gold porphyry
project.
On behalf of the Board of Directors of Skeena Resources Limited,
Walter Coles Jr.
President & CEO
Qualified Persons
Exploration activities at the Eskay Creek Project are admini stered on site by the Company’s
Exploration Managers, Colin Russell, P.Geo. and Adrian Newton, P.Geo. In accordance with National
Instrument 43-101 Standards of Disclosure for Mineral Projects, Paul Geddes, P.Geo. Vice President
Exploration and Resource Development, is the Qualified Person for the Company and has prepared,
validated and approved the technical and scientific content of this news release. The Company strictly
adheres to CIM Best Practices Guidelines in conducting, documenting, and reporting i ts exploration
activities on its exploration projects.
Quality Assurance – Quality Control
Once received from the drill and processed, all drill core samples are sawn in half, labelled and
bagged. The remaining drill core is subsequently securely stored on site. Numbered security tags are
applied to lab shipments for chain of custody requirements. The Company inserts quality control (QC)
samples at regular intervals in the sample stream, Including blanks and reference materials with all
sample shipments to monitor laboratory performance. The QAQC program was designed and
approved by Lynda Bloom, P.Geo. of Analytical Solutions Ltd., and is overseen by the Company’s
Qualified Person, Paul Geddes, P.Geo, Vice President Exploration and Resource Development.
Drill core samples are submitted to ALS Geochemistry’s analytical facility in North Vancouver, British
Columbia for preparation and analysis. The ALS facility is accredited to the ISO/IEC 17025 standard
for gold assays and all analytical methods include quality control materials at set frequencies with
established data acceptance criteria. The entire sample is crushed and 1kg is pulverized. Analysis for
gold is by 50g fire assay fusion with atomic absorption (AAS) finish with a lower limit of 0.01 ppm and
upper limit of 100 ppm. Samples with gold assays greater than 100ppm are re -analyzed using a 50g
fire assay fusion with gravimetric finish. Analysis for silver is by 50g fire assay fusion with gravimetric
finish with a lower limit of 5ppm and upper limit of 10,000ppm. Samples with silver assays greater than
10,000ppm are re -analyzed using a gravimet ric silver concentrate method. A selected number of
samples are also analyzed using a 48 multi -elemental geochemical package by a 4 -acid digestion,
followed by Inductively Coupled Plasma Atomic Emission Spectroscopy (ICP -AES) and Inductively
Coupled Plasma Mass Spectroscopy (ICP-MS) and also for mercury using an aqua regia digest with
Inductively Coupled Plasma Atomic Emission Spectroscopy (ICP -AES) finish. Samples with sulfur
reporting greater than 10% from the multi -element analysis are re -analyzed for to tal sulfur by Leco
furnace and infrared spectroscopy.
Cautionary note regarding forward-looking statements
Certain statements made and information contained herein may constitute “forward looking information” and “forward
looking statements” within the meaning of applicable Canadian and United States securities legislation. These statements
and information are based on facts currently available to the Company and there is no assurance that actual results will
meet management’s expectations. Forward -looking statements and information may be identified by such terms as
“anticipates”, “believes”, “targets”, “estimates”, “plans”, “expects”, “may”, “will”, “could” or “would”. Forward -looking
statements and information contained herein are based on certain factors and assumptions regarding, among other things,
the estimation of mineral resources and reserves, the realization of resource and reserve estimates, metal prices, taxation,
the estimation, timing and amount of future exploration and development, capita l and operating costs, the availability of
financing, the receipt of regulatory approvals, environmental risks, title disputes and other matters. While the Company
considers its assumptions to be reasonable as of the date hereof, forward -looking statement s and information are not
guarantees of future performance and readers should not place undue importance on such statements as actual events
and results may differ materially from those described herein. The Company does not undertake to update any forward -
looking statements or information except as may be required by applicable securities laws.
Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for
the adequacy or accuracy of this release.
Table 1: Mine grid Phase I drill hole locations and orientations:
HOLE-ID EASTING NORTHING ELEVATION LENGTH (M) AZIMUTH DIP
SK-18-012 9811.7 10004.8 1041.1 175.5 90.1 -44.8
SK-18-013 9811.7 10004.8 1041.1 173.0 88.8 -60.7
SK-18-014 9811.7 10004.8 1041.1 176.0 95.4 -74.9
SK-18-015 9811.7 10004.8 1041.1 152.0 106.6 -85.4
SK-18-016 9792.0 9960.0 1048.0 176.0 96.6 -44.7
SK-18-017 9792.0 9960.0 1048.0 176.0 96.7 -75.0
Table 2: Eskay Creek Project Phase I 21A Zone length weighted drill hole gold and silver composites:
HOLE-ID FROM (M) TO (M) CORE LENGTH (M) Au (g/t) Ag (g/t) AuEq (g/t)
SK-18-012 73.50 118.50 45.00 9.07 76 10.09
INCLUDING 73.50 101.27 27.77 13.06 84 14.18
INCLUDING 73.50 75.00 1.50 12.35 20 12.62
AND 75.00 75.69 0.69 10.80 9 10.92
AND 76.50 77.50 1.00 20.60 14 20.79
AND 77.50 78.50 1.00 14.80 33 15.24
AND 78.50 80.00 1.50 20.80 71 21.75
AND 80.00 81.00 1.00 30.20 108 31.64
AND 81.00 82.50 1.50 10.95 254 14.34
AND 82.50 84.00 1.50 11.95 563 19.46
AND 84.00 85.50 1.50 23.40 247 26.69
AND 85.50 87.00 1.50 18.80 83 19.91
AND 87.00 88.50 1.50 14.80 36 15.28
AND 88.50 89.05 0.55 17.30 17 17.53
AND 89.05 89.60 0.55 23.10 20 23.37
AND 89.60 91.00 1.40 13.70 43 14.27
AND 99.00 100.00 1.00 13.55 3 13.58
AND 100.00 101.27 1.27 10.65 7 10.74
SK-18-013 74.00 100.50 26.50 2.89 63 3.73
SK-18-014 74.00 102.30 28.30 5.39 139 7.24
INCLUDING 85.55 98.00 12.45 8.23 185 10.69
INCLUDING 86.30 87.50 1.20 8.20 518 15.11
AND 87.50 89.00 1.50 8.42 14 8.61
AND 89.00 89.60 0.60 8.01 741 17.89
AND 89.60 91.00 1.40 15.15 215 18.02
AND 95.00 96.00 1.00 5.89 239 9.08
AND 96.00 96.50 0.50 9.07 232 12.16
AND 96.50 98.00 1.50 9.24 232 12.33
SK-18-015 75.60 108.50 32.90 3.74 95 5.00
INCLUDING 75.60 77.00 1.40 11.15 15 11.35
AND 86.00 87.50 1.50 5.50 387 10.66
AND 87.50 89.00 1.50 3.02 423 8.66
SK-18-016 60.92 76.00 15.08 2.84 17 3.06
SK-18-016 88.00 107.00 19.00 1.30 19 1.55
SK-18-017 61.50 105.00 43.50 4.16 204 6.88
INCLUDING 63.00 78.00 15.00 3.53 502 10.23
INCLUDING 64.50 66.00 1.50 2.34 2,600 37.01
AND 73.50 75.00 1.50 8.32 1,135 23.45
Gold Equivalent (AuEq) calculated via the formula: Au (g/t) + [Ag (g/t) / 7 5]. Reported core lengths represent 80 -100% of true widths and are
supported by well -defined mineralization geometries derived from historical drilling. Length weighted AuEq composites were constrained by
geological considerations as well as a calculated 1.0 g/t AuEq assay grade cutoff assuming reasonable prospects for economic extraction via open
pit mining methods. Grade capping of individual assays has not been applied to the Au and Ag assays informing the length weig hted AuEq
composites. Processing recoveries have not been applied to the AuEq calculation and are disclosed at 100% due to a lack of supporting information.
Samples below detection limit were nulled to a value of zero.